London: Lidl GB‘s 2021-22 profit of 41.1 million pounds ($49 million) on revenue of 7.8 billion pounds is “a very modest return”, but the company is focused on the long term, its boss said on Thursday.
“We’ve been relentless in the investment in infrastructure and really laying foundations for future growth,” CEO Ryan McDonnell told Reuters after the results were published.
He said margins were low because the business was investing in keeping a lid on prices.
McDonnell noted that Lidl GB invested 653 million pounds in fixed assets in its year to Feb. 28 2022, including in two new distribution centres and over 50 new stores.
Lidl GB, the country’s sixth largest supermarket group, currently trades from over 935 stores and is targeting 1,100 by 2025.
In September, rival Aldi UK reported a 79% fall in 2021 operating profit.
Aldi UK has similarly said it is relaxed about its relatively low profitability because it is investing in Britain for the long term.